This is exactly what was mentioned was going happen when it was said the West was shooting itself in the foot to punish Russia. The neo-Soviets are laughing themselves to the bank because they know they will endure longer as they are more shielded from the repercussions. Their turning to China and Turkey as new customers are evidence enough.
The UK’s oil industry is in “crisis” as prices drop, a senior industry leader has told the BBC.
Oil companies and service providers are cutting staff and investment to save money.
Robin Allan, chairman of the independent explorers’ association Brindex, told the BBC that the industry was “close to collapse”.
Almost no new projects in the North Sea are profitable with oil below $60 a barrel, he claims.
‘Everyone is retreating’
“It’s almost impossible to make money at these oil prices”, Mr Allan, who is a director of Premier Oil in addition to chairing Brindex, told the BBC. “It’s a huge crisis.”
“This has happened before, and the industry adapts, but the adaptation is one of slashing people, slashing projects and reducing costs wherever possible, and that’s painful for our staff, painful for companies and painful for the country.
“It’s close to collapse. In terms of new investments – there will be none, everyone is retreating, people are being laid off at most companies this week and in the coming weeks. Budgets for 2015 are being cut by everyone.”
Mr Allan said many of the job cuts across the industry would not have been publicly announced. Oil workers are often employed as contractors, which are easier for employers to cut.
His remarks echo comments made by the veteran oil man and government adviser Sir Ian Wood, who last week predicted a wave of job losses in the North Sea over the next 18 months.
Full article: North Sea oil industry ‘close to collapse’ (BBC)